Precious Metals Stage Recovery After Three-Day Decline
Gold and silver prices in India rebounded on Wednesday, November 19, breaking a three-session losing streak as investors sought safe-haven assets. The recovery came amid anticipation of key economic indicators from the United States that could influence the Federal Reserve's interest rate trajectory.
MCX Gold December futures climbed 0.20% to ₹1,22,884 per 10 grams around 9:10 a.m., while MCX Silver December contracts advanced 0.45% to ₹1,55,337 per kg during the same trading period. This upward movement followed significant declines in the previous session.
Recent Downturn and Market Context
On Tuesday, both precious metals had extended their losses for the third consecutive session, pressured by expectations of Federal Reserve rate cuts. Gold futures on MCX witnessed substantial declines, with the December contract dropping by ₹1,807 (1.47%) to settle at ₹1.21 lakh per 10 grams. Silver futures followed the downward trend, with December futures falling ₹3,660 (2.36%) to ₹1.51 lakh per kg.
The current market represents a notable pullback from recent peaks. Gold has declined nearly ₹9,000 from its record high of ₹1,30,874 reached on October 17. Similarly, silver has dropped over ₹26,000 from its lifetime high of ₹1,78,100 touched on October 14.
Key Economic Events Driving Market Sentiment
Investors are closely monitoring several crucial economic releases that could provide direction for precious metals. The market awaits the September non-farm payrolls data, scheduled for release on Thursday after being delayed due to the recent U.S. government shutdown. Additionally, minutes from the Fed's latest policy meeting, expected later today, are being keenly anticipated for insights into the central bank's thinking.
Expectations of further Federal Reserve rate cuts have strengthened following indications of a weakening U.S. labor market. Fed Governor Christopher Waller highlighted that more companies are discussing potential layoffs as they prepare for slower demand and anticipate productivity gains driven by artificial intelligence.
Expert Analysis and Price Projections
According to Ponmudi R, CEO of Enrich Money, both domestic and global precious metals have cooled off from their recent highs but continue to hold key structural supports. "MCX Gold is taking support from its rising channel near ₹1,21,800–₹1,21,000, with yesterday's hammer candle reinforcing this demand zone. Immediate resistance is seen at ₹1,23,400 and ₹1,24,000," Ponmudi explained.
On COMEX, gold has found support near the $4,000 psychological level and reclaimed its trendline, with $4,085 acting as the next resistance. A breakout above this zone could open the door for an advance toward $4,100–$4,123.
Meanwhile, silver is positioned for a potential rebound according to Emkay Wealth Management. The metal is likely to bounce back to the $52-$53 levels and thereafter may move toward the next targets of $58 and $62, with strong support at $47.60.
The report cautioned that given the relatively higher volatility in silver prices, any further investments should be considered as tactical positions with a six to twelve-month horizon. Additional strong support levels for silver exist at US$45.60 and US$42.00, in that order.
After a brief correction, silver prices are currently hovering around US$48.80 per ounce, largely due to profit booking and the easing of trade restrictions between the US and China on critical minerals.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies. We advise investors to check with certified experts before making any investment decisions.
